Agenda #4b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
Ralph D. Karpinos, Town Attorney
SUBJECT: Resolution Calling a Hearing on Potential Legislative Requests
DATE: March 25, 2002
The attached Resolution A would call a public hearing for April 8, 2002, to receive public comment on potential items to be included in the Council’s Legislative Program for the upcoming short session of the North Carolina General Assembly. Resolution B would endorse the efforts of the N.C. Metropolitan Coalition.
BACKGROUND
At the January 29 Public Forum on the Budget, the Council identified potential issues for discussion with the Legislative Delegation. These items are listed below under the “Potential Issues” section. The Council’s original calendar called for a meeting with the Delegation on February 22, but that meeting was deferred because the General Assembly’s “short session” does not start until May 28. The Council met with the Legislative Delegation on February 25 to discuss the State’s budget shortfall.
The Council now has the opportunity to call a hearing to receive public comment on the issues the Council wishes to consider including in its Legislative Program. The Council could then review potential legislative requests with the Legislative Delegation.
The General Assembly convenes for its “short session” this year on May 28. The deadline for submittal of local bills to Legislative Bill Drafting is 4 p.m. on June 5 for the House and 4 p.m. June 12 for the Senate. Legislative rules require that during this “short session” the principal sponsor of any local bill certify that no public hearing in the Legislature will be required or requested on the bill; that the bill is non-controversial; and that the bill is approved for introduction by each member of the local delegation.
POTENTIAL ISSUES
On January 29, the Council discussed a number of possible legislative matters for consideration as local bills or issues of State-wide concern. As we understand it, the General Assembly normally does not take action in a “short session” on issues that are deemed to be controversial. It is possible that all of the issues listed below may be deemed controversial this year.
The Council’s previous discussions included potential requests for legislation as follows. We have included these items in Resolution A:
Revenues
Protection of Town Revenues
Protection of existing local government revenue sources, including local option sales taxes, utility franchise taxes, intangibles tax reimbursements, beer and wine taxes, business inventory tax reimbursements, and State Fire Protection funds.
Tax on Tickets to University Athletic Events
On February 11, the Council received a petition from Roland Giduz to request a tax on University basketball and football ticket sales to provide additional revenues (Attachment 1).
Beer and Wine Tax
Increase the tax on beer and wine sales and provide greater revenue to cities.
Real Estate Transfer Tax
A Real Estate Transfer Tax would be paid when title of land passes from one owner to another.
Environmental and Transportation Issues
Mandatory Program for Recycling of Bottles and Cans
A State-wide, mandatory program for recycling bottles and cans would increase the quantity of such materials that are recycled.
Vehicle License Requirement for University Students
University students whose residences are in Chapel Hill but whose vehicles are not registered in Orange County would be required to pay a $25 student vehicle registration fee.
Housing and Community Development Issues
Investment Tax Credits for Developers Who Build Affordable Housing
Tax credits for developers who build affordable housing would provide an incentive to construct additional units.
Increased State Staffing for Sedimentation and Erosion Control Enforcement
The N.C. Sedimentation Control Commission has established rules and regulations to protect the environment from sedimentation and soil erosion. A staff is in place to inspect and enforce the sedimentation and erosion control laws. However, the staff is limited, with one technician to enforce dam safety, mining regulations and sediment and erosion control for a three-county area including Orange County. We understand that, on average, each construction site within a region will be inspected once every two or three months for sediment and erosion control compliance. It appears that additional staffing will be necessary because of the volume of University development during the next decade.
N.C. Metropolitan Coalition Issues
The N.C. Metropolitan Coalition, together with the N.C. League of Municipalities and the N.C. Association of County Commissioners, has announced its opposition to Governor Easley’s escrow of local revenues to balance the State’s Fiscal 2001-02 budget. When the Coalition members met with the Governor on February 13, the Governor invited the local government representatives to identify other options to meet his obligation to balance the State budget. The Coalition formed a State Budget Task Force to review other options and identified other sources of funds that could be used as alternatives to the Governor’s escrow of local revenues.
We have included this list as Attachment 2. The list includes the following alternative revenue sources:
The Council may wish to consider endorsing these efforts in the accompanying Resolution B.
NEXT STEPS
The Council may wish to consider adding items to the list of those included in the proposed Resolution A or deleting some of those already listed.
Following the hearing on April 8, the Council will have an opportunity to consider adopting a legislative program on April 22 or May 13 in order to submit the Town’s legislative program prior to the June 5 N.C. House deadline and the June 12 N.C. Senate deadline for local bills. The Council also may wish to schedule a meeting with the Legislative Delegation.
RECOMMENDATION
That the Council adopt the attached Resolution A calling a public hearing for April 8, 2002, to receive comment from the public prior to considering adoption of a legislative program for the Town, with whatever revisions the Council determines.
The Council may also wish to adopt Resolution B, endorsing the efforts of the N.C. Metropolitan Coalition.
ATTACHMENT
1. February 11, 2002 Petition from Roland Giduz (p. 7).
2. N.C. Metropolitan Coalition Information from March 20, 2002 (beginning with email from Beau Mills (p. 9).
RESOLUTION A
A RESOLUTION CALLING A PUBLIC HEARING FOR APRIL 8, 2002, TO RECEIVE PUBLIC COMMENT ON PROPOSALS FOR CONSIDERATION AS PART OF THE TOWN OF CHAPEL HILL’S LEGISLATIVE PROGRAM FOR THE UPCOMING SESSION OF THE NORTH CAROLINA GENERAL ASSEMBLY (2002-03-25/R-2a)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council calls a public hearing for April 8, 2002, at 7 p.m. in the Council Chambers of Town Hall on the following proposed items for consideration as part of its Legislative Program for the upcoming session of the General Assembly:
This the 25th day of March, 2002.
RESOLUTION B
A RESOLUTION ENDORSING THE EFFORTS OF THE N.C. METROPOLITAN COALITION STATE BUDGET TASK FORCE IN IDENTIFYING ALTERNATIVE REVENUE SOURCES TO BALANCE THE STATE’S BUDGET SHORTFALL (2002-03-25/R-2b)
WHEREAS, the N.C. Metropolitan Coalition, together with the N.C. League of Municipalities and the N.C. Association of County Commissioners, has announced its opposition to Governor Easley’s escrow of local revenues to balance the State’s Fiscal 2001-02 budget; and
WHEREAS, the Coalition formed a State Budget Task Force to review other options and identified other sources of funds that could be used as alternatives to the Governor’s escrow of local revenues; and
WHEREAS, the Coalition State Budget Task Force identified the following as alternative revenue sources:
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby endorses the efforts of the N.C. Metropolitan Coalition State Budget Task Force in identifying alternative sources of revenue to balance the State’s budget shortfall.
This the 25th day of March, 2002.